GBP closed in NY at $1.5760, having eased away from traded highs of $1.5798 and after failing to take out the reported barrier at the figure. GBP buoyancy was seen driven by month end flows as well as a strong corrective pullback in the EUR, which saw EUR/GBP break down to stg0.8280. GBP consolidated the recovery between $1.5754/67 in early Asian trade before slipping lower late on to $1.5733 ahead of the European open. Move lower was seen instigated by EUR/USD slippage, with weight slightly added on back of weaker than expected Nationwide data. Rate pressed to a low of $1.5707 as the cross recovered to challenge stg0.8300/05. Asian sovereign cable buys saw rate recover, pushing to $1.5782 ahead of PMI as market rumors suggested a strong release. Strong number confirmed saw rate extend to $1.5788, but react was countered by talk of a large RHS fix order for 1000GMT. Cross extended recovery to stg0.8344 through the fix, taking GBP back to $1.5745, but sterling retained a buoyant tone, off lows ahead of NY.
EasyForexNews Research Team